The reason I ask is I have always wondered who really 'needed' this LOA more. The crewforce, or the Company?

Depending on initial size of the FDAs, the posting very well would have allowed filling of the FDAs with those such as yourself, whose personal circumstances favor bidding them under the current (well, current at that time) CBA. A very small cadre of new hires may have been needed for the F/O seats.

The benefits to the Company of the LOA and accompanying attachment is substantial. Unfortunately, now we will never really know how much it was worth to them.

For those reading, and planning on bidding one of the FDAs, anyone else that would have bid it without the LOA? Just curious.

I mean, why SHOULDN'T the pilots fund the company's international expansion out of their own pockets?

Cost neutral, what a joke.

I most likely would have bid HKG.

Calculations?
 

bluejuice:

Single
$74,200 $154,800 $15,107.50 plus 28% of the amount over 74,200

Without exclusion
120,000 - 74,200 = 45,800 * .28 = 12,824 + 15,107.50 = 27,931.50

$30,650 $74,200 $4,220.00 plus 25% of the amount over 30,650

With exclusion
120,000 - 85,000 = 35,000 - 30,650 = 4,350 * .25 = 1087.50 + 4220 = 5307.50

Hong Kong
120,000 * .16 = 19,200

19,200 + 5307.50 = 24,507.50 for an upside of 3,424.

Looking at raw numbers, it looks like 148k is the break even point between equalization and foreign exclusion. Considering that Hong Kong is a widebody domicile, it's fairly safe to assume that most FO's and all Capt's will benefit with equalization.

France works differently, so the 16% flat tax is not accurate

BJ,
You are way off on your guestimates. Your tax rate overseas is based on AGI. AGI=gross income-exclusion-rent-living expenses. My AGI overseas with a 155 gross was about 30K which put me in the 15% bracket. I always paid less than 2K in federal tax!
CP

If you don't want Fred to hold out any taxes just claim more exemptionx on your w4 form. There is no law that says you have to claim the number of people living with you you can claim more and Fedex doesnt withhold the federal tax.

I want a donut with frosting all over it... and I want sprinkles, but not all over it... I just want them scrunched over on the edge. Got anything like that?

Anybody bidding a FDA just got a new CPA and he works for Fred. The MEC got a briefing on the PWC program payed for with union dollars. I want that same briefing (at least a handout to take to my CPA) before I decide which FDA I will bid. Yes everyone has personal data that will make no two returns the same; but printing eight sample returns (2 for each seat each FDA) is the very least the MEC can do to prove they accomplished some diligence.

bluejuice,

hard to follow the numbers you have, but, to me it looks as if you are taking the income-tax exclusion=taxable income and then hitting US tax rate at that adjusted income.

but, in a screwjob of all foreign workers, congress adjusted that so that your income is taxed at the highest rate versus the lowest.


so 100k-82.4k=17.k which used to be taxed at (15% of income over 7825) is now taxed at (28% of the amount over 77,100)

certainly not a tax lawyer, though and willing to admit that I could be wrong

so, 28% of the income above 82.4k, then 33% of the income above 160.9k

http://www.expatica.com/actual/artic...story_id=31818

See the section about deductions. Also, see the URL below regarding rent and living expenses.

Please read the following URL, it may answer some questions y'all have.

http://www.irs.gov/publications/p54/index.html

BJ,

Thanks for the tips but again you just blow off the deductions. How can you possible say the break even point is 148K when I would venture to say the average tax return here at FEDEX has 50K worth of deductions. What does that do to your break even point? Bidding an FDA (looking for a pay raise) is stupid if you don't have some good financial advice. Getting that good financial advice can only be done with the cooperation of the Company or the Union. I expect more from my union.